How and Why Social Enterprises Adopt Artificial Intelligence: Opportunities, Challenges, and Future Implications for Research and Practice

Artificial intelligence (AI) is increasingly recognised as a transformative technology, yet its adoption among social enterprises remains underexplored. Given their dual socio-economic missions, this paper examines how and why social enterprises adopt AI, identifying key opportunities and challenges. Drawing on survey data from 92 UK social enterprises comprising current adopters, prospective adopters, and non-adopters, the study provides comparative insights into sectoral patterns, organisational size, AI applications, costs, and perceived barriers. Findings show that social enterprises adopt AI cautiously and incrementally, prioritising low-cost tools such as content generation and process automation to enhance internal efficiency and communication. Current adopters emphasise efficiency gains, while prospective adopters focus on external engagement and improved user experience. Across both groups, limited technical expertise and ethical concerns emerge as primary constraints, though AI is largely viewed as a complementary rather than replacement technology. These findings align with Rogers diffusion of innovations theory, highlighting how experiential learning reduces uncertainty, and with debates on disruptive innovation, showing that AI currently functions as a sustaining rather than disruptive force. The study contributes to understanding innovation diffusion, organisational hybridity, and responsible AI in the social enterprise context, offering implications for research, policy, and practice.